All Forum Posts by: Michael Chilton

@Zach McWaters I think you made a mistake on the after repair value, otherwise you’re into this place for $20k more than it’s worth.

@Joe T.

If you believe that $5500 for water, trash and lawn management is accurate then you will need to increase your overall expected expense total from 12k. You’re leaving $800/yr for repairs and cap-ex. You should budget about 15% of income for those two combined.

@Joe T. It’s not automatic, but you can figure on the assessed value creeping up. In Des Moines assessments are done on a property every other year. In Iowa they are paid in arrears, so you don’t immediately have to pay on the new assessment. Have they done improvements that you could receive an abatement for?

@Joe T. Mortgage isn't included toward expenses to figure NOI. What are taxes and insurance? Are utilities paid by tenants? Trying to figure out why expenses are 1/3 of gross rents. What is tax assessed value? It's important to consider this as taxes may increase dramatically if you purchase above tax assessed amount.

@Isamel Jean

https://beacon.schneidercorp.com

@Isamel Jean Do you have their name and trying to get contact info?

@John Morgan What are all the services they provide for that rate?

 Benefits of investing in the rural Midwest. Taxes suck, though.

@Amy Canfield

I'm working on a STR deal now, and have budgeted 25% for a local property manager to market, book, clean, and maintain. In this case, they're not just managing and arranging the work, they're doing the work themselves.

@Scott Trench great points regarding insurance and property taxes. I bought a $53k 4plex in Iowa with 20% down. Monthly income is $1600. Sounds good, right? Not sure what actual cashflow will be since I just purchased two months ago, but I only show $300/month on paper. That’s self-managed, too. Taxes are 2.8%, and that’s considered decent!